Glendon Capital Takes Profits on Diebold Nixdorf, Slashing $18.6 Million Position in Q3

Glendon Capital Management LP has substantially trimmed its stake in Diebold Nixdorf, offloading 370,396 shares during the third quarter of 2025. According to the fund’s latest SEC 13F filing dated November 12, 2025, this divestment represents a strategic retreat from what was once a consistently growing holding.

The Numbers Behind the Pullback

The position reduction is striking: Glendon’s Diebold Nixdorf holdings contracted from 1,548,740 shares to 1,178,344 shares—a 24% haircut that translated into a $18.6 million value adjustment during the quarter. Following this sale, Diebold now constitutes 3.66% of the fund’s U.S. equity portfolio, downgrading it from the fund’s core roster.

What makes this divestment particularly notable is the timing. Glendon had consistently accumulated Diebold shares since the company’s market return in August 2023 following bankruptcy reorganization. Throughout 2024 and into the first half of 2025, the fund steadily increased its position. Q3 marked the first reversal—and it was decisive.

Profitability Pivot at Diebold

Diebold Nixdorf operates at the intersection of banking automation and retail technology solutions. The company’s infrastructure spans cash recyclers, ATM dispensers, self-checkout terminals, teller automation systems, and integrated software platforms serving financial institutions and retailers globally. Its business model emphasizes recurring revenue through maintenance contracts, managed services, and software subscriptions alongside hardware sales.

By the third quarter, Diebold had demonstrated meaningful operational improvement. The company posted $50.6 million in net income (TTM basis), a dramatic swing from the $17 million loss recorded in 2024. Revenue stands at $3.69 billion (TTM), while market capitalization reached $2.34 billion as of November 11, 2025.

Why the Sudden Exit?

The stock itself has been a stellar performer for Glendon. Since the fund’s initial position in August 2023, Diebold shares have compounded approximately 217%—crushing the S&P 500’s gains by a considerable margin. As of mid-November, shares traded at $65.25, representing a 61.83% gain over the past 12 months alone and outpacing the broader index by 44.76 percentage points.

Yet Glendon liquidated roughly one-quarter of its position. The reasons remain partially opaque, though several factors warrant consideration. First, Diebold’s forward guidance projects only 2% sales growth annually for the next two years—a modest outlook that may have triggered caution. Second, Glendon simultaneously elevated positions in NRG Energy and NCR Atelos, suggesting capital reallocation priorities. Third, valuation concerns cannot be dismissed: while the forward P/E of 16 appears reasonable, the current P/E ratio of 48 reflects a market priced for perfection.

Glendon’s Revised Portfolio Architecture

After the Diebold sale, Glendon’s top five holdings reflect a clear technology and energy tilt:

1. FYBR (NASDAQ): $902.3 million (49.23% of AUM)
2. EXE (NASDAQ): $226.4 million (12.35% of AUM)
3. VST (NYSE): $128.7 million (7.02% of AUM)
4. TLN (NASDAQ): $112.7 million (6.15% of AUM)
5. NRG (NYSE): $102.1 million (5.57% of AUM)

Diebold, now representing the seventh-largest position, signals a meaningful strategic recalibration.

What’s Next for Investors?

Despite the trimming, Glendon retained over three-quarters of its Diebold stake—a fact that suggests continued conviction. Double-digit profit growth is anticipated for both the current year and 2026, creating a narrative of sustained operational momentum. For investors monitoring Glendon’s moves, this partial exit raises questions about near-term execution risks versus the company’s longer-term recovery trajectory. The question remains: was this a profit-taking move ahead of anticipated headwinds, or a rebalancing to chase higher-conviction opportunities? The fund’s decision to hold the majority of shares may provide the answer in coming quarters.